Cryptocurrency Analysis

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Trading signal for Ethereum (ETH) on November 22 - 23, 2021: sell below $4,375 (6/8)


Ethereum (ETH) is trading at 4,323 below the 21 SMA and below the strong resistance at 4,375. We can consider this bounce from the low of 3,949 as a new opportunity to sell.

As Ethereum is trading below the 21 SMA located at 4,500, it indicates the possibility that it will continue its fall. Ethereum is expected to continue its correction movement in the next few hours towards 4/8 of murray at 3,750.

On November 18, it reached the low of 3,943, returning to the price levels of October 28. From this low, Ether has been rebounding until it reaches the strong resistance of 4.375, where it is located 6/8 of a murray.



On November 16, Ether entered a bearish phase. Because it is trading below the 21-day moving average, the short-term outlook is bearish. It is likely that over the course of the next few days it will be trading below this zone, targeting the 200 EMA located at 3,250.

The eagle indicator touched the 95-point zone on November 7 that is an extremely overbought mark. Ether is likely to continue trading below the high of 4,863 and could continue the correction in the next few days.

Our trading plan for the next few hours is to sell between the two levels below 6/8 (4,375) or SMA (4,500), with targets at the psychological level of 4,000 and up to the level of 3,750 which represents a key support.

Ethereum is likely to continue is a bearish move for my next few days, as long as it remains below the 21 SMA and below the 6/8 murray.


Support and Resistance Levels for November 22 - 23, 2021

Resistance (3) 4,559
Resistance (2) 4,428
Resistance (1) 4,375

Support (1) 4,166
Support (2) 4,062
Support (3) 3,952


A trading tip for ETH for November 22 - 23, 2021

Sell bellow 4,375 (6/8) with take profit at 4,062 (5/8) and 3,750 (45), stop loss above 4,550






Dimitrios Zappas
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Wave analysis for BTC/USD on November 22, 2021



It shows that the initial part of a new bearish simple zigzag (A)-(B)-(C) is being formed for the BTC/USD cryptocurrency pair. In particular, a downward sub-wave (A) is forming.

It takes the form of a five-wave pulse 1-2-3-4-5. It is possible to notice descending impulse sub-waves 1 and 3, and corrective sub-waves in the form of zigzags 2 and 4.

Currently, we are in the final wave 5, which is expected to end at 54690.00. The price may rise after reaching the specified level as shown in the chart.

In the current situation, one can consider opening sell deals in order to take profit at the end of wave (A).


Trading recommendations:
It is suggested to sell from the current level and take profit at 54690.00.





Roman Onegin
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of BTC/USD for November 22, 2021


Crypto Industry News:
The Reserve Bank of Australia (RBA) has warned Australian investors against speculating on digital assets, questioning the entire crypto sector.

During his speech to the Australian Corporate Treasury Association on Thursday, RBA payment policy chief Tony Richards gave an overview of DLT technology, crypto assets, stablecoins, and central bank digital currencies (CBDCs).

In his speech, Richards asked questions about the validity and growth of cryptocurrencies in 2021, moving on to the amount of capital invested in memecoins such as Dogecoin and Shiba Inu. He also assured that public attention to cryptocurrencies in 2021 was "undoubtedly driven by influencers and celebrity tweets."

Richards outlined three scenarios in which "the current speculative demand may start to reverse".

First, he argued that investors may soon be "less fond of fads" and FOMO, and instead pay more attention to warnings from regulators and policymakers.

Second, he said governments around the world could seek to crack down on energy-intensive proof-of-work cryptocurrencies such as Bitcoin, and finally said tax authorities could seek to remove anonymity to reduce financial crime.


Technical Market Outlook
The BTC/USD pair has bounce from the level of $55,748 and made a local high at $60,022. Nevertheless, the bulls are too weak to carry on bouncing and the market reversed back down. The momentum remains weak and negative despite the potential low of the wave 3/C. Only a sustained breakout above the level of $62,767 would change the outlook to more bullish.

Weekly Pivot Points:
WR3 - $75,582
WR2 - $70,896
WR1 - $64,654

Weekly Pivot - $60,209
WS1 - $54,112
WS2 - $49,298
WS3 - $43,190


Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $52,943 is clearly broken on the daily time frame chart (daily candle close below $52,000).







Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Technical Analysis of ETH/USD for November 22, 2021


Crypto Industry News:
According to former US Secretary of State Hillary Clinton, cryptocurrencies could destabilize entire countries.

Moreover, it has identified cryptocurrencies as one of the top three challenges that will need to be overcome in the near future. In addition to cryptocurrencies, these are disinformation and artificial intelligence.

Hillary Clinton believes that the growing interest in Bitcoin and other cryptocurrencies may begin to negatively affect countries over time, which in the long run may translate into a threat to the entire global economy.

According to her, cryptocurrencies threaten the US dollar and its position as a global reserve currency, which is bad not only for the US but for the whole world. It is worth noting, however, that the BTC rate is rising along with the inflation in the US, and the recent announcement of record inflation was accompanied by ATH on the oldest cryptocurrency.

Thus, the reasons for the weakening of the USD should probably be sought in the uninterrupted printing of money.


Technical Market Outlook
The ETH/USD pair has retraced 50% of the last wave down and hit the level of $4,433 before the reversal happened. The market conditions on the H4 time frame chart and overbought again, so a deeper down move might occur, targeting the level of $3,954. Any violation of this level would accelerate the down move towards the key short-term technical support seen at $3,954. Please notice, that the larger time frame trend remains up and there is no indication of the trend reversal yet.


Weekly Pivot Points:
WR3 - $5,566
WR2 - $5,159
WR1 - $4,752

Weekly Pivot - $4,357
WS1 - $3,938
WS2 - $3,564
WS3 - $3,134


Trading Outlook:
The next long-term target for ETH is seen at the level of $5,000. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls. The level of $3,677 is the key mid-term technical support for bulls.








Sebastian Seliga
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

El Salvador hosts "Bitcoin Week"



El Salvador hosted two events last week, which gave industry experts and cryptocurrency advocates the opportunity to celebrate their commitment to the digital token.

Wearing hats with the bitcoin symbol and T-shirts with the "buy the fucking dip" mantra, adherents who flocked to the country said they were not worried about recent price fluctuations and were investing in long-term plans.

The highlight of the week was the annual Bitcoin and Blockchain Conference, which is a three-day event that ended on Friday.

On Wednesday night, hundreds of bitcoin supporters plunged into Latin American rap in front of a live music scene, knocking over cans of beers and denouncing the US dollar. They also warned that hyperinflation may be observed soon.

Meanwhile, companies ranging from bitcoin ATM providers to crypto exchanges decided to open stands around the Teatro Presidente in El Slavador's capital city. Some of the attendees also planned trips to El Zonte, a beach town an hour away where Bitcoin first took off in the country.

But Bitcoin has been declining amid all the holidays, dropping in price every day except last Friday. It ended roughly 16% below its all-time high of nearly $ 69,000 earlier this month.

The revelers were not scared of this, and the conference speakers predicted that in the coming years, Bitcoin could reach $ 400,000 or even $ 1 million.



Jose Luis Guillen, CEO of Coincaex, said the recent drop should not bother people who plan to keep their tokens. "I don't worry about the price in the long term,"he said. "Bitcoin is in a 13-year-long bull-market," he added.

Gillen also noted that there was an increase in clients over the past year, thanks to rising inflation in the US. He also said their clients are getting older, now in the 45-65 age group compared to those in the 20-30 years that he saw initially.

Meanwhile, Jerry Schick said prices for goods and services in the United States have skyrocketed this year, so maintaining the recreational-vehicle park she owns became more expensive. She recounted that she started buying bitcoins in February and tried to buy cryptocurrencies between $ 20 and $ 100 a day to offset inflation. Her portfolio has grown 40% since then. "I think Bitcoin is the escape hatch for what is fixing to happen - the collapse of the US dollar, biological weapons, and extinction events," Schick said.

As for Colombian singer Yessenia Correa, blockchain technology is what brought her to Bitcoin. She has been speculating on price fluctuations since 2015, and the profit helped her pay for her studies at a music school. She said the price of bitcoin is high right now so she is looking at other cryptocurrencies under $ 1 to try to make money faster. She said "there are many options." Of course, many of these alternative coins have had their wild leaps, with huge ups and downs followed by spectacular drops.

Colombian programmer Jesse Rodriguez said he is still buying bitcoins, which he started experimenting with in 2014. Although Colombia does not suffer from the hyperinflation of regional counterparts like Venezuela or Argentina, the national peso is worth half of what it was seven years ago. This is why when Rodriguez does work for foreign clients now, he requests payment through Paypal and immediately converts his foreign wages into Bitcoin. "I don't even keep dollars anymore," he said. "In the early days, Bitcoin was demonized and no one viewed it as a means of payment, but here in El Salvador you can use it to pay at Starbucks, or to buy pupusas. It's a dream come true, and I hope the same happens in Colombia."

Bitcoin became legal tender in El Salvador on September 7, and the government launched its Chivo digital wallet, which was preloaded with Bitcoin. Citizens quickly began speculating, buying dips and selling draws with a wallet that quickly converts to US dollars. El Salvador's economy minister Maria Luisa Hayem said the move put the country "on the vanguard of technology."

Samson Mow, CSO of Blockstream, said: "A financial system built on Bitcoin is inevitable. You don't need the World Bank, you don't need the IMF. Bitcoin will save the day. This is the one chance we have to fix money."

Meanwhile, Pablo Gonzalez, co-founder of Bitso, commented: "Money is changing in the world."





Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin forms bearish channel.

Bitcoin is trading below $58,000 price level. Price is making lower lows and lower highs. Price has formed a bearish short-term channel.



Red lines - bearish channel

Bitcoin has so far made a low around $55,530. There is no bullish divergence by the RSI. As long as price is inside the bearish channel we remain bearish looking for a move lower. The upper channel boundary resistance is at $59,300. Bulls need to break above this level and stay above it in order to take over the short-term trend.





Alexandros Yfantis
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

BTC analysis for November 22,.2021 - Downside continuation in the play

Technical Analysis:



BTC has been trading downside today but I see further downside continuation in the next period.


Trading recommendation:
Due to breakout of the rising trendline and the fake breakout of the 20-day high, I see potential for the downside continuation.

Watch for selling opportunities on the rallies with the downside target at $53,250.

BTC is trading below the 10,20 and 50 day moving average.

Stochastic is showing a bull cross but with no big reaction on price action, which is sign that cross is "weak:"

Resistance level is set at the price of $62,200






Petar Jacimovic
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin Bounced Above $57k But Correction Will Continue: Where Will BTC Bounce To Move To New Highs?

Bitcoin remains within the framework of a strong corrective movement; a local rebound should not be misleading. In the near future, the price will continue to be in this area and the probability of a subsequent decline is much higher than the chance of a rebound above $60k. Despite this, positive signals are visible on the charts of the cryptocurrency, which portend the most powerful bullish wave in the last six months.

As of 11:00 UTC, Bitcoin is trading in the region of $57k and has fallen in price by 3% over the past day. It also recorded a weekly drop of 13% with trading volumes in the region of $31 billion.

The news background continues to remain neutral, and the reaction of the retail audience is the main catalyst for the drop in Bitcoin quotes. However, despite local sales, there is no massive profit-taking among the main BTC audience, which is also a bullish signal.

At the same time, the coin needs to continue its recovery through price correction to deeper levels. As of November 22, the price has reached the middle of the liquidity range, which should be fully utilized.

Taking this into account, in the near future, it is necessary to be ready to buy additional coins, since the market gives a unique chance before a rather protracted rise to new historical highs.

The main signal for the imminent onset of a powerful upward trend is the "bullish engulfing" pattern, which was formed on the monthly candle for October 2021. The chart shows that the closing price of the monthly candlestick is at the level of historical highs, which has been repeatedly tested over the past six months.

By itself, the "bullish engulfing" pattern is a strong signal for growth, and taking into account the closure at the upper border of the previous months, one can expect a protracted rise that will last about a month.

It is also worth looking at a similar situation in October 2020. The chart shows a similar situation, where after a certain period of consolidation, the price also closes at the level of the previous candles and forms an engulfing pattern, which heralds the end of the stabilization period and the start of a new growth cycle.

With this in mind, we should expect a strong bullish rally from BTC in the near future, which will start with a rebound from the $53k-$55k area. The closest stop of the asset will be the $75k line, after which the asset will continue its upward movement to $98k.





The overall picture is clear and the market is approaching a bullish rally, but in a narrower time frame, the trend is still downward. The price successfully bounced off the Fibo level of 1.56 and continued its upward movement to the next corridor, around the $59.6k mark, where the 50 EMA also takes place.

In case of a bullish breakout, a strong support zone is formed here and the price moves further but rests against the 0.5 Fibo level, which should hold and reverse the price. Since all previous levels of the $56.6k-$59.6k range have been tested, the price will not encounter significant resistance in the downward trend.

In case of breakdown of the $56.6k mark and concurrently the Fibo level of 1.5, Bitcoin will start testing the main range of $52k-$ 55.5k, where, most likely, massive buying and the emergence of a bullish rally to the new ATH will begin.

However, it is worth closely monitoring the market sentiment during a decline, as excessive euphoria or fear can aggravate the price movement in any direction. This is fraught with a correction and a $52k decline, which casts doubt on the medium-term upward trend.

In general, Bitcoin looks very confident, and the market confirms its bullish plans, holding volumes even during a correction.








Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Tips for beginners: where are key Bitcoin zones and how to use them during a correction?

Bitcoin starts the new trading week with a positive rebound to the middle of the current fluctuation range. This is positive news, indicating strong support for the asset in the $55k-$60k region. At the same time, there is every reason to believe that the market correction will continue and the cryptocurrency will fall even lower before starting an upward movement to new highs.

With this in mind, it is extremely important to identify the existing corridors in the current area of price movement in order to trade the coin during the correction.

One of the most convenient tools for determining the main support and resistance levels is the Fibonacci level system, which can be drawn on any horizontal chart of a cryptocurrency and other financial instruments. The boundaries of this instrument should be defined as the beginning and end of an impulse movement (upward / downward).

The four-hour chart shows that the BTC price actively reacts to Fibo levels and moves from one line to another. The chart shows that before the rebound, the price broke through the Fibo level of 1.5, after which it began to recover and reached the $57k mark.

This suggests that the Fibo level of 1.5 is a strong support zone, and therefore, when trading here, it is worth setting take-take when playing on a decline, since, most likely, it is in this area that the price will rebound.

* Learn and analyze

Price consolidation is the period when a certain cryptocurrency is within a narrow horizontal price channel. Usually, this process indicates price stabilization or weakness of market participants (buyers and sellers).

Relative Strength Index (RSI) is a technical indicator that allows you to determine the strength of a trend (downward or upward), warns of possible changes in the direction of price movement. Thanks to this metric, it is possible to determine in what stage the asset is - overbought or underbought. The optimal mark for this chart is 60 for a bullish trend. It indicates strong demand for the coin and the strength of the current upward momentum. Upon crossing this mark, the coin begins to move towards overbought.

MACD (Moving Average Convergence / Divergence Index) is an indicator that allows you to draw certain conclusions about the trend based on the movement of moving averages and finding the metric values between them. A common bullish signal is the intersection of the white line below the red and bearish, on the contrary, when the white line crosses the red from above, which indicates a downward movement.

Stochastic (Stochastic Oscillator) indicates the strength of the momentum of the current prevailing trend. If the indicator is above 80, then the asset can be considered overbought, but if the stochastic is below 20, then this is a signal that the asset is oversold.

Fibonacci levels are a technical analysis tool used in the form of levels to which the price of an asset reacts. Used to determine price movement ranges and support/resistance zones.

As of 13:30 UTC, prerequisites for the upward movement of Bitcoin are visible, as evidenced by the growing technical indicators.

MACD and Stochastic Oscillator have formed a bullish crossover and are starting an upward movement, which indicates an attempt by buyers to consolidate their positions and push the price even higher. At the same time, the relative strength index also began to grow, confirming the increased interest of buyers in the asset.

The closest target for the price will be $59.6k. It was there that the upward impulse stopped and the price began to decline. Now, this zone is playing the role of resistance, but if it is successfully broken, a strong local support zone will form there. This is where the 50-day exponential moving average passes as well as the 0.786 Fibonacci level.

The successful breakout of the said level will move the price to the $62.5k-$63k area, where there is a strong trend resistance and the 0.5 Fibo level. Most likely, a price reversal will occur here and for some time the asset will move in a given range between two correction structures.

Next, you need to look at the market, but since BTC has not worked out the $52k- $55.5k range, the probability of a correction increases.



The nearest medium-term target for trading is below $55k, where the market should buy more before starting a full-fledged bullish rally to new highs.

In the shorter term, the main target will be the $62.5k-$63k area, where the impulse movement should reverse towards $53k.

When trading within this range and tracking price movement trends, it is necessary to pay sufficient attention to support zones as optimal levels for placing safety orders such as stop losses and take profits, since quotes tend not to break through zones on the first try.


In such cases, it is extremely important to protect yourself from unexpected bounces and the influence of news factors. However, the next week will be characterized by price movement within the $57k-$62k range and further decline beyond the $55.5k area.






Artem Petrenko
Analytical expert of InstaForex
© 2007-2021

[IFX_Selena]

Bitcoin: what will price drop and decreasing level of BTC dominance result in?

Bitcoin has lost over $150 billion in a week, roughly 15% of its recent high of $68,700 set on November 10. But this is not the only loss. In addition to falling prices, Bitcoin's dominance in the cryptocurrency market has dropped sharply over the past week.

Despite this, Bitcoin remains the leading cryptocurrency. But the current dominance rate of 41.9% is lower than the 48% level on October 20, 2021.


FALLING PRICE AND BTC DOMINANCE: WHAT'S THE MATTER?

According to experts, altcoins are now valued as more stable assets. In addition, they are cheaper and in demand among investors, reducing the dominance of Bitcoin.

Some of the notable coins such as Binance Coin, XRP, and Solana have dropped less than Bitcoin in the recent correction.

But the fall in price is still assessed as a correction against the background of profit-taking after reaching historic highs.


BITCOIN'S CURRENT TARGETS: IS IT WORTH WORRYING ABOUT?

Bitcoin bounced off the support at 55,842.84 so briskly on Friday, forming a long lower shadow that one even wanted to believe in a further rise in the price. But hopes were not justified. No less technically, Bitcoin is now bouncing down from the mirror level of 59,283.67. In fact, the strong psychological boundary of $60,000 per coin is confirmed as resistance.

This creates the preconditions for two possible scenarios. The first is a decline to the level of 55,842.84 and its breakdown. In this case, the next target for the downside will be at $52,000 per Bitcoin.

The second scenario is a sideways recovery at 55,842.84 - 59,283.67, if its support holds.


CRYPTOCURRENCY IS NOT A FLEETING "WHIM" AND WILL NOT GO ANYWHERE

Since everything is clear with the short-term outlook and price benchmarks for Bitcoin and we can only wait, I propose to digress into the long-term prospects. There is optimistic news here or at least opinions.

Australia's Financial Services Minister Jane Hume has publicly spoken out in favor of cryptocurrency. She stated that it was not a passing "whim."

In her speech at the Australian Financial Review summit on Monday, Hume criticized the growing fear of crypto in the government, saying it "won't disappear anytime soon" despite the government's stance.

As a government official, she advocated caution in this area but cautioned against being overly afraid of cryptocurrencies. According to Hume, this technology is similar to other technological breakthroughs like the iPhone. This means that any opposition to digital assets today can be compared to opposition to technologies such as the iPhone or the Internet.

In her speech, Hume highlighted the incredible opportunities that decentralized finance, backed by blockchain technology, provides. She also warned that excessive fear of this new technology could lead to Australia being left behind in the crypto race and the global financial revolution.

Well, such conversations are already good. And although they are unlikely to have an impact on the market locally, in the long term they create the preconditions for widespread adoption of cryptocurrencies and the growth of demand for them.







Ekaterina Kiseleva
Analytical expert of InstaForex
© 2007-2021